Tesla may not qualify for California's new state tax credits under a proposal if President-elect Donald Trump eliminates the federal tax credit for electric vehicle purchases. Tesla CEO Elon Musk criticized the proposal, highlighting that Tesla is the only automaker producing EVs in California. Newsom, responding to potential federal cuts, plans to propose a new version of California's Clean Vehicle Rebate Program. The state is facing a $2 billion budget deficit and uncertainty surrounds the program's costs and structure. Tesla shares dropped 4% on Monday, with a further dip in after-hours trading.
